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Day in the life of a hedge fund manager
Inside the high-stakes world of hedge fund managers
Investor Briefcase
March 06, 2025
The average hedge fund manager at a top five firm earned an estimated $63 million in 2024, driven by performance fees and bonuses. Every decision can mean massive gains or losses for their investors, making it one of the most intense and high-stakes fields in finance. But what does a day in their life really look like??
Based on interviews with industry professionals, this week we have recreated a look into the daily life of a hedge fund manager:
☕ Early Morning Market Prep
🔢 Live Trading and Portfolio Adjustments
📊 Risk Management and Planning for Tomorrow
— Investor Briefcase Team
5:30 AM – 9:30 AM | Market Prep and Strategy Calls
Most hedge fund managers wake up before sunrise. The first priority is checking global markets. Overnight activity in Asia and Europe can set the tone for the trading day ahead. Futures prices, bond yields, earnings reports, and macroeconomic data are reviewed quickly to assess potential market-moving events.
By 06:00 AM, managers dive into analyst reports prepared overnight by research teams. These reports summarize earnings updates, macroeconomic shifts, and any potential trade setups. Hedge funds rely on detailed analysis to confirm or challenge their existing positions.
Between 06:30 - 07:00 AM, many managers fit in a workout before heading into the office. Exercise helps focus and manage stress before the long trading day ahead.
“My consistent morning routine in the most important factors for my success.”
At 07:30 AM, the team gathers for a strategy discussion. The focus is on refining trade ideas and preparing for any unexpected market moves.
Final preparations are made before the opening bell. Orders are set, risk levels are checked, and execution strategies are finalized.
9:30 AM – 1:00 PM | Trading the Market
The opening bell marks the start of high-intensity trading. Stocks move fast, and managers must decide when to execute, adjust, or exit positions. If a stock drops after earnings but starts recovering, managers must decide whether to adjust their position or risk exiting
By 10:30 AM, managers reassess portfolio exposure. The risk team ensures that no single trade carries excessive weight and that proper hedging strategies are in place. If a stock moves against expectations, a decision must be made to cut losses, hedge, or add to the position.
“The most important rule is to play great defense, not great offense. Every day I assume every position I have is wrong.”
At 11:00 AM, traders and analysts scan for new opportunities. An unusual spike in volume may indicate institutional buying. A company unexpectedly announcing a stock buyback may present an opportunity.
By 12:30 PM, managers take a step back from active trading to reassess broader market conditions and adjust strategies accordingly.
1:00 PM – 4:00 PM | Investor Calls and Closing Trades
Afternoons are a mix of trading and investor relations. At 1:00 PM, institutional clients call in for updates on fund performance and positioning. Hedge fund managers must clearly explain their investment thesis and risk management strategy.
“If you cannot explain why you made a trade, you should not have made it.”
By 2:30 PM, the trading team refines positions. Portfolio adjustments are made to align with the latest market movements. Some positions are exited to lock in profits, while others are held for continued momentum.
At 4:00 PM, the market closes, but the work continues.
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4:00 PM – 10:00 PM | Review and Research
After the market closes, managers review the day’s performance. Every trade is analyzed to determine what worked, what didn’t, and what adjustments are needed.
“Experience is making mistakes and learning from them.”
By 5:30 PM, earnings reports from major companies start coming in. Strong results from one company may indicate strength in an entire sector, presenting a buying opportunity. A company missing expectations may trigger a short trade.
At 7:00 PM, managers hold brief evening meetings with analysts to discuss research assignments for the next day. The goal is to stay ahead of market trends and be prepared for any developments.
Most managers take a break in the evening, though markets are never far from their minds. Some go to dinner, others exercise or review macroeconomic reports.
By 9:30 PM, a final check of international markets helps managers anticipate any overnight developments that could impact the next trading day.
The next day, the process starts again.
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Notable Hedge Fund Managers
> Ray Dalio: Founder of Bridgewater Associates, Dalio built the world’s largest hedge fund through his principles-based investment strategy. Known for his macroeconomic approach and “Pure Alpha” strategy, he navigates global markets with precision.
> Steve Cohen: Founder of Point72 Asset Management and former head of SAC Capital, Cohen is a legendary trader known for outsized returns. SAC faced a historic insider trading scandal, resulting in a $1.8 billion fine. Cohen rebranded with Point72 and successfully returned to the industry.
> Ken Griffin: Founder of Citadel, Griffin built one of the most powerful and sophisticated trading empires in the world. His firm is known for high-frequency trading, market-making, and quantitative investing.
> Jim Simons: Founder of Renaissance Technologies, Simons revolutionized investing with quantitative trading. His Medallion Fund, powered by complex mathematical models, has posted returns unmatched by traditional hedge funds.
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